Bitcoin in 2020 – Crash or To The Moon?

Cryptocurrencies have shown strong signs of recovery in 2019. However, Bitcoin & Co. are still far from their highs. What will the world’s largest digital currency look like in 2020? An outlook for the new year.

Regulation and Security Aspects remain the greatest Challenges in the Crypto Market

• Bitcoin’s halving event should cause price movements in 2020
• Expert estimates diverge massively

Cryptocurrencies have completely turned the financial market upside down. More and more investors are interested in Bitcoin, Ethereum, Ripple & Co. and are also devoting increased attention to the blockchain. But experts are still completely at odds with each other on the question of how the cryptocurrency market will continue in 2020.

Read this post on Laibcoms.asia about the actual crypto market places, so-called bitcoin brokers or exchanges, where Bitcoin and other cryptocurrencies can be bought, sold and traded for profit.

Mainstream Adoption remains the Key Point

Since Bitcoin was first mentioned in 2008 in a white paper by the alleged Bitcoin founder Satoshi Nakamoto, the cryptocurrency has already come a long way in its relatively young history. But whether the currency can really assert itself on the market depends on whether the digital coin makes it to mainstream investment. Only when Bitcoin & Co. have completely arrived in the masses and are used as a matter of course as an alternative to established fiat currencies such as the euro and the dollar in everyday life, can one speak of a real breakthrough.

Cryptocurrencies are still a long way from being adapted for the mass market, but more and more investors and companies are making efforts to heave digital coins out of their niche and into the mainstream.

This includes the startup Bakkt, which recently made a name for itself through a cooperation with the coffee house chain Starbucks. The trading platform is developing a consumer app for cryptocurrencies, which will make it possible to pay at partners of the app with cyber-currencies. And other companies are also pressing ahead to help cyber-currency make its breakthrough into the mainstream: Facebook, for example, wants to launch a worldwide cryptocurrency with its controversial Libra project and use the massive reach of its own portals Facebook and Whatsapp to do so.

Security remains a central Issue for many Investors

Despite all efforts: Bitcoin & Company are not yet ready for mass production. During the Bitcoin hype in 2017, which had driven the crypto currency to a record high of almost 20,000 US dollars, it was especially the fear of many investors to miss something that had driven more and more investors to Bitcoin investments. How little well-founded the investment decision of many may have been was shown in the subsequent crash, during which many investors left the market in panic.

In the meantime, it is especially the high volatility of cryptocurrencies that has caused many investors to stay away from the market and stand on the sidelines uninvolved. This is because many market participants lack collateral – collateral with which other investments are equipped. It is still the lack of regulation of the cryptocurrency market that keeps investors from entering it.

By 2020, this is likely to be one of the biggest challenges facing regulators and supervisors in the cryptomarket. So far, there are numerous national solo efforts, but global and universal approaches are scarce. For example, the guidelines for mining and trading of cryptocurrencies vary massively in different countries. Even when dealing with largely unregulated ICOs, Initial Coin Offerings based on crowdfunding, states do not pull together internationally. The situation is similar when it comes to the taxation of crypto profits. Investors are therefore likely to continue to press for clarity in dealing with the financial instrument cryptocurrency in 2020 and put regulators under increasing pressure to work on uniform regulations.

Clear, binding rules could also give new impetus to the struggle for a Bitcoin ETF. So far, the US financial supervisory authority SEC, for example, has been dropping one application after another or postponing the decision on possible approvals. The main sticking point is always that the authority misses efforts on the part of ETF providers to ensure that manipulative or fraudulent practices are prevented.

When the first Bitcoin products come on the market, this should give many potential investors the security they need to enter the market. At the same time, mainstream adoption by end customers is expected to increase.

What will happen with the Bitcoin Course in 2020?

Where the journey of the world’s largest cryptocurrency, Bitcoin 2020, will take us therefore depends primarily on two factors: security and mass market adoption. Since it is difficult to predict how things will progress in these areas in the coming year, the Bitcoin experts‘ forecasts for the price development of Cybercoin 2020 also differ considerably. Hardly any other financial asset divides the experts as Bitcoin does.

Many analysts are bullish on Bitcoin and expect the cryptocurrency to at least perform better than other assets in the coming year. Absolute crypto bulls such as John McAfee still consider a Bitcoin price of one million dollars for 2020 to be realistic, and the expert cites the scarcity of the crypto currency in particular as the reason for this mega price target. Because only about three million Bitcoins can be dug up, then the target of 21,000,000 digital Bitcoin coins will be reached. And it will become increasingly difficult to mine Bitcoins in the future, because 2020 is an important date for Bitcoin: Starting in May 2020, the block reward for miners will be reduced to 6.25 coins, and thus halved. After the last halving events in 2012 and 2016, the Bitcoin price had already risen sharply. Crypto bulls like McAfee hope for this effect also in 2020.

Not all experts expect such a price explosion as McAfee expects. The head of China’s mining giant Bitmain, Jihan Wu, was much less euphoric recently. At the „World Digital Mining Summit“ in Frankfurt, he was skeptical whether Bitcoin would react to the upcoming halving with a price increase. For him it is more decisive whether the halving of the block reward coincides with one of the cycles in which the crypto markets operate and which he considers to be the cause of crypto price increases, as was reported by the Chinese news portal 8BTC, among others.

Nevertheless, Jihan Wu emphasized that the prospects for Bitcoin are positive in the medium to long term – but the expert left open whether the price increase will be visible as early as 2020.

Meanwhile, the economic expert Nouriel Roubini, who has become known as „Dr. Doom“, remained completely unimpressed by cryptocurrencies like Bitcoin. On several occasions in the past, he railed against Bitcoin, called crypto fans „fools“ and declared that he considered the Blockchain to be the most unjustly hyped technology of all time.

And even star investor Warren Buffett is no longer a friend of cyber devises. In the past, the proven crypto critic had called Bitcoin a „mirage“. „If you want to gamble, someone else will come along and pay more money tomorrow. It’s not an investment.“ He was convinced it would come to a bad end with cryptocurrencies.

Bitcoin: 2020 will be exciting

As far as expert assessments of the development of Bitcoin 2020 differ, the year should be as interesting for crypto investors. Will the regulators manage to pull together and introduce generally applicable rules for trading cryptocurrencies? What are the next steps in terms of security? Can Bitcoin & Co. gain a foothold in the mass market and play a much greater role in people’s everyday lives than before? And will the artificial scarcity of the block reward in May put investors back into a FOMO mood that will help the share price recover? When will Bitcoin ETFs be launched and can Bitcoin underpin its supremacy in the crypto universe?

One thing is certain: 2020 will be an exciting year for Bitcoin.